The post GBP/USD slips as US PPI lifts US Dollar, Middle East risks rise appeared on BitcoinEthereumNews.com.

The Pound Sterling (GBP) drops some 0.10% on Friday as the Greenback is underpinned by a hot inflation report in the US, which prompted investors to price in a less dovish Federal Reserve (Fed). Also heightened risks in the Middle East weighed on the GBP/USD pair, which trades at 1.3469 at the time of writing. Sterling eases as firm US inflation data tempers Fed cut bets and risk sentiment deteriorates Risk appetite has taken a toll as the AI hype seems to have faded, as depicted by the S&P 500, which is headed towards its worst month since March 2025. In the US, the core Producer Price Index (PPI) in January exceeded estimates of 3%, expanding by 3.6% YoY, up from 3.3% in December. Headline PPI dipped from 3% to 2.9% YoY but missed forecasts for a more pronounced drop to 2.6%. Even though inflation jumped —due to tariffs as the PPI suggests that trade services rose 2.5%, expectations that the Federal Reserve will reduce rates remain unchanged. Money markets are projecting 56 basis points of easing towards the year-end, according to Prime Market Terminal data. Geopolitical risks are increasing Tensions in the Middle East remain high, amid growing speculation that the US authorized the departure of some embassy personnel and families in Israel and Baghdad. US President Donald Trump said that he hasn’t decided on Iran but stressed that he is not happy with how they negotiate. When asked about using military force, he said, “I don’t want to, but sometimes you have to.” Across the pond, local elections are exerting pressure on Prime Minister Keir Starmer. Britain’s left-wing Green Party won in an area of Manchester mostly dominated by Starmer’s Labour Party for almost a century. So far, the GBP has shrugged off domestic political turmoil surrounding Starmer,…

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Filed under: News - @ February 27, 2026 7:24 pm